Abstract
The state constitution makes a provision that they can expand the sources of revenues for socio-economic purposes. Among these revenues are waqf, zakat and similar Islamic religious revenue. This study will present an evidence based on the consolidated account in several states in OIC member countries. The results will try to prove that (i) there are several advantages to compiling a consolidated account, such as being able to centralize the planning, and reporting of the revenue. In addition, it also helps in formulating the public policy. This study may have an impact on the disbursement made by the waqf institutions in one state that should be recognized and endorsed by the relevant authorities or operational regulations.
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Notes
- 1.
Depending on the system of government. The federalism system such as Malaysia and Nigeria defines the relationship between the federal government at the national level and its constituent units at the regional, state or local levels. While the unitary system of government is a sovereign state governed as a single entity such as Indonesia and Brunei, the federal government is supreme, and the administrative divisions exercise only powers that the federal government has delegated to them.
- 2.
Home rule is the power of a constituent part (administrative division) of a state to exercise such of the state’s powers of governance within its own administrative area that have been decentralized to it by the federal government.
- 3.
John Forest Dillon, for whom the Dillon Rule is named, was the Chief Justice of the Iowa Supreme Court approximately in 1867. The Dillon Rule is used in interpreting law when there is a question of whether or not a local government has a certain power.
- 4.
Local government such as Pasir Gudang and Putrajaya in Malaysia were allowed to issue sukuk to finance their activities. Refer to Ismail (2018).
- 5.
Here, we use the word of contribution (instead of collection), because of the voluntary act of individual. In the case of zakat, we use the word of collection because it is a compulsory act from individual.
- 6.
The charity foundation as a legal entity is founded on the reasons that it can utilize the wealth (waqf as wealth) to achieve a certain purpose in the social, religious and humanitarian fields. It also does not require to create a membership.
- 7.
Money can also in the form of deposits.
- 8.
The program aims to solicit funds from the public so that they would put aside part of his property to participate in the program productive waqf.
- 9.
The centralization of waqf was due to: (i) the administration wanted to control the religious elements in the country since waqfs were often associated with religious activities; (ii) the state had an eye on the financial resources of the endowments; and (iii) centralization meant bureaucratization of the religious establishment, which was thus denied any opportunity for autonomy.
- 10.
Refer to Ismail and Pratomo (2017).
- 11.
“They ask thee, (O Muhammad), what they shall spend. Say: That which ye spend for good (must go) to parents and near kindred and orphans and the needy and the wayfarer. Moreover, whatsoever good ye do; Lo! Allah is Aware of it”. QS.2:215 and “And serve Allah. Ascribe nothing as partner unto Him. (Show) kindness unto parents, and unto near kindred, and orphans, and the needy, and unto the neighbor who is of kin (unto you) and the neighbor who is not of kin, and the fellow-traveler and the wayfarer and (the slaves) whom your right hands possess. Lo! Allah loves not such as are proud and boastful”. [QS.4:36] and also the following hadith “I am nearer to every believer than his own self; so whoever leaves behind a debt or children to support, it shall be our charge; and whoever leaves property, it is for his heirs, and I am the heir of the person who has no heir. – I inherit his property and pay his debt” [Narrated by Muslim].
- 12.
“The government is the guardian of anyone who has no other guardian” [Narrated by Abu Daud and Turmidzi].
References
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Ismail, A. G. (2018). Money, Islamic Banking and Real Economy (2nd ed.). Singapore: Cengage Learning Asia Pte. Ltd.
Ismail, A. G., & Pratomo, W. A. (2017). Crowding Out and Waqf Crowdfunding: Do They Create Macroeconomic Imbalances (IESTC Working Paper Series: No. 6).
Mallinak, B. (2006). The Revenue Rule: A Common Law Doctrine for the Twenty-First Century Duke. Journal of Comparative & International Law, 16, 79–124. Retrieved from http://scholarship.law.duke.edu/cgi/viewcontent.cgi?article=1107&context=djcil. Accessed 28th August 2017.
Ministry of Law, Bangladesh. Awqaf Ordinance of 1962. Retrieved from http://bdlaws.minlaw.gov.bd/print_sections_all.php?id=326. Accessed 31 August 2017.
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Ismail, A.G., Pratomo, W.A. (2019). Waqf Law and Islamic Religious Revenue: New Sources of a State Revenue. In: Ali, K., Hassan, M., Ali, A. (eds) Revitalization of Waqf for Socio-Economic Development, Volume II. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-18449-0_7
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